.

Payment MBA 6315 6 Contribution Margin Income Statement at Current Sales: Solution: Please place your answer and supporting calculations in the space below and either highlight your final answer or surround it with a border so that it can be easily identified by the grader. Problem D (38 points): Weather-Ticht sels windows and doors. The following data applies to the company's operating activities: 1 Total Units (products combined) to Break Even: Doors 18.00% Total 100.000 Current sales mix in units percentage Selling Price per Unit Dr. Variable Cost per unit Fixed Costs Current Unit Volume Assume l units produced are sold. Windows 82.00% $200 $125 $580,000 65,600 $500 $350 $320,000 14,400 7 Margin of Safety at Current Sales Level $900 000 80,000 2 Units of Each Product to Break Even: Use the space provided below for organized calculations (including things like Current Unit Volume, Wtd CM, Wtd Average CM, Sales Mix, etc. See the narrated lectures for guidance. The detailed questions you are required to answer start on line 40 of this worksheet and are also listed briefly in the SOLUTION space provided starting in Column of this worksheet: 8 Contribution Margin Income Statement at the Target Level of Pretax income: 3 Total Sales Dollars (products combined) to Break Even: Sales Dollars by Product to Break Even: What is the current break even point in units for both products combined? (2 points) What is the number of units of each product that need to be sold at the current break-even point? (2 points) What is the current break-even point in sales dollers for both products combined? (2 points) How much, in sales dollars, at each product does the company currently need to sell at the break-even point? (2 points) Show the Current Contribution Margin Income Statement at Break Even. (6 points) Show the Contribution Margin Income Statement at the Current Sales Level. (7 points) What is the Margin of Safety at the Current Sales Level? (3 points) 9 Units of each Product to reach Target Pretax income: 5 Current Contribution Margin Income Statement at Break Even: 10 Margin of Safety at Target Sales Level: Show the contribution Margin Income Statement at the Target Pretax Income level. HINT--you need to start at the bottom of the contribution Margin Income Statement and work your way up to the top to figure this out. (8 points) What is the Sales Unit Volume of each product needed to achieve the Target Level of Pretax Income? (3 points) What is the Margin of Safety at the Target Sales Level? (3 points) Required: 2 Item 6: Total Contribution Margin - $7,080,000; Item 8: Windows Pre-Tas Target Income = $4,774,000; Check Figure for Doors is not provided. 5 6 7 The 8 9 10 Check Feures: Rem 4: Doors = $915,254; Check Feure for Windows is not provided